Rates fall in Treasury auction

The Treasury Department auctioned $22 billion in three-month bills at a discount rate of 4.35%, down from 4.6% last week. An additional $17 billion in six-month bills was auctioned at 4.38%, down from 4.59% last week.

The three-month rate was the lowest since Aug. 20, when it was 2.85%. The six-month rate was also the lowest since Aug. 20, when it was 3.95%.

The rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,890.04, and a six-month bill sold for $9,778.57.

Separately, the Federal Reserve said that the average yield for one-year Treasury bills, a popular index for making changes in adjustable-rate mortgages, rose to 4.3% last week from 4.16% the previous week.